The comments are a little depressing. Everyone is saying "Oh god uninstall Chrome" when they should be saying "Thank Google, they paid for this thing up front instead of people getting hacked."
Agreed. I did get a kick out of this one : "uninstall yourself out of the internet", which thus far has been the only guaranteed method of avoiding any sort of exploit.
Normally this is the sort of privilege escalation we'd see from IE, but I do wish operating systems, Windows in particular, had better sandboxing for applications. Browser sandboxing alone obviously isn't gonna cut it.
I'm curious why they showed this at Pwn2Own and not Google's own Pwnium, especially if they are going to share the exploit with Goog. Is there more money to be made this way?